Herr said it will continue to operate Silk City as a separate company upon completion of the acquisition. Silk City manufactures snacks under the Waffle Snax and Waffle Works brands, in addition to co-packing for international snack food companies.

Herr Foods, founded in 1946, manufactures potato chips, pretzels, tortilla chips, cheese curls and popcorn under the Herr's, Flavor Mill, 1853 and Good Natured brand names and distributes them nationwide. Its snacks are widely sold in the vending channel.

Herr Foods president Ed Herr said the acquisition will help the manufacturer meet the growing demand for natural and lowfat snacks. Herr added that its partnership with Silk City will expand its contract manufacturing business.